4-Star Stocks Poised to Pop: Yum! Brands

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Based on the aggregated intelligence of 115,000 investors participating in Motley Fool CAPS, the Fool's free investing community, fast-food giant Yum! Brands (NYSE: YUM) has earned a respected four-star ranking. While five-star stocks have been the best performers, our data shows that four-star stocks still outshine the market by a significant margin and shouldn't be taken lightly. Conversely, low-rated stocks have woefully lagged the market average.

With that in mind, let's take a closer look at Yum! Brands' business, and see what CAPS investors are saying about the stock right now.

Yum! Brands facts 

Headquarters (Founded)	Louisville, Ky. (1997)
Market Cap	$17.6 billion
Industry	Restaurants
TTM Revenue	$10.9 billion
Management	CEO David Novak (since 1999); CFO Richard Carucci (since 2005)
Major Brands	KFC, Pizza Hut, Taco Bell, Long John Silver's
Return on Capital (avg. last three years)	21.7%
CAPS members bullish on YUM also bullish on	Johnson & Johnson (NYSE: JNJ), Altria (NYSE: MO)
CAPS members bearish on YUM also bearish on	Citigroup (NYSE: C), Ford Motor (NYSE: F), Home Depot (NYSE: HD), Bank of America (NYSE: BAC)

Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing-12-months.

Over on CAPS, 390 of the 415 All-Star members who have rated Yum! Brands -- some 94% -- believe the stock will outperform the S&P 500 going forward. These All-Star bulls include HonestK and SolitaireOne, both of whom are ranked in the top 20% of our community.

In late 2006, HonestK had this to say about Yum!:

An American company that is aggressively and successfully doing business in China. Good food, strong brands, lots of new hungry customers in emerging economies with hard earned cash to spend. What's not to like?

A pitch from SolitaireOne just last month shared that bullish optimism, highlighting the stock's tasty international appeal:

... I'm looking for another "food" play for the current marketplace -- I'm going w/ YUM. Showcasing restaurants including: KFC, Pizza Hut and Taco Bell; these kinds of bargain eating establishments should see a sustained upswing given the current economy. Overseas (ie: Chinese) growth will prove invaluable for the future of YUM brands. Meanwhile, investors will earn a nice 2.1% dividend (currently) while additional growth opportunities continue to play out.

What do you think about Yum! Brands -- or any other stock, for that matter? Make your voice heard on Motley Fool CAPS today. More than 115,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.